Deere & Company · NYSE:DE
Deere & — Q3 2024 Earnings Presentation
20 slides from Deere &'s earnings presentation, Aug 15, 2024
Slide 1: 3Q 2024 Earnings Call
3Q 2024 Earnings Call 15 August 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This earnings call and accompanying materials may include forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words such as “forecast,” “gu
Slide 3: 3Q 2024 Results
3Q 2024 Results ($ millions except where noted) Net Sales and Net Sales Net Income Diluted EPS Revenues (Equipment Operations) (attributable to Deere & Company) ($ per share) $15,801 $14,284 $2,978 $10.20 $13,152 $11,387 $1,734 $6.29 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 3Q 2023 3Q 2024 17
Slide 4: Production and Precision Ag 3Q 2024 Results
Production and Precision Ag 3Q 2024 Results $ in millions Net Sales 25% Operating Profit Comparison ($847) $6,806 $1,782 $5,099 $48 ($5) $10 ($62) $35 $177 $24 $1,162 3Q 2023 3Q 2024 3Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2024 Mix Costs R&D Items 4 John Deere | 3Q
Slide 5: Small Ag and Turf 3Q 2024 Results
Small Ag and Turf 3Q 2024 Results $ in millions Net Sales 18% Operating Profit Comparison $3,739 ($280) $732 $3,053 $63 $8 ($54) $38 ($2) ($29) $20 $496 3Q 2023 3Q 2024 3Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2024 Mix Costs R&D Items 5 John Deere | 3Q 2024 Earnings
Slide 6: Ag and Turf Industry Outlook FY 2024
Ag and Turf Industry Outlook (in units) – FY 2024 U.S. and CANADA U.S. and CANADA EUROPE AG LARGE AG SMALL AG and TURF ~15% ~10% ~15% SOUTH AMERICA AG ASIA AG (tractors and combines) 15-20% Down moderately Source: Deere & Company forecast as of 15 August 2024 6 John Deere | 3Q 2024 Earnings Call | A
Slide 7: Production and Precision Ag Business Segment Outlook
Production and Precision Ag Business Segment Outlook $ in millions Net Sales Operating Margin 20-25% 20.5-21.5% $26,790 26.1% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 15 August 2024 7 John Deere | 3Q 2024 Earnings Call | August 15, 2024
Slide 8: Small Ag and Turf Business Segment Outlook
Small Ag and Turf Business Segment Outlook $ in millions Net Sales Operating Margin 13.5-14.5% 20-25% $13,980 17.7% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 15 August 2024 8 John Deere | 3Q 2024 Earnings Call | August 15, 2024
Slide 9: Construction and Forestry 3Q 2024 Results
Construction and Forestry 3Q 2024 Results $ in millions Net Sales 13% Operating Profit Comparison $3,739 ($223) $3,235 $716 ($37) $29 ($33) $25 $2 ($20) ($11) $448 3Q 2023 3Q 2024 3Q 2023 Volume/ Price Currency Warranty Production SA&G/ Special Other 3Q 2024 Mix Costs R&D Items 9 John Deere | 3Q 202
Slide 10: Construction and Forestry Industry Outlook FY 2024
Construction and Forestry Industry Outlook (in units) – FY 2024 U.S. and CANADA U.S. and CANADA COMPACT CONSTRUCTION EQUIPMENT CONSTRUCTION EQUIPMENT 5-10% Flat to down 5% GLOBAL FORESTRY GLOBAL ROADBUILDING ~10% Flat to down 5% Source: Deere & Company forecast as of 15 August 2024 10 John Deere | 3
Slide 11: Construction and Forestry Business Segment Outlook
Construction and Forestry Business Segment Outlook $ in millions Net Sales Operating Margin 10-15% ~15% $14,795 18.2% FY 2023 FY 2024 Fcst FY 2023 FY 2024 Fcst Source: Deere & Company forecast as of 15 August 2024 11 John Deere | 3Q 2024 Earnings Call | August 15, 2024
Slide 12: Financial Services Net Income – Results and Outlook
Financial Services Net Income – Results and Outlook $ in millions Quarter Results Fiscal Year Outlook $216 ~ $720 $619 $153 3Q 2023 3Q 2024 FY 2023 FY 2024 Fcst Subsequent On August 9th, announced agreement with a large Brazilian bank to invest and become 50% owner of our Brazilian financing arm, Ba
Slide 13: Deere & Company Outlook
Deere & Company Outlook FY 2024 FORECAST Net Income Effective Net Operating (attributable to Deere & Co.) Tax Rate* Cash Flow* ~$7.0B 23-25% $6.0-6.5B Research and Development Expenses* Up slightly Other Capital Expenditures* ~$1.8B *Equipment Operations Source: Deere & Company forecast as of 15 Aug
Slide 14: Delivering more value for our customers
Delivering more value for our customers 14 John Deere | 3Q 2024 Earnings Call | August 15, 2024
Slide 15: Appendix
Appendix 15 John Deere | 3Q 2024 Earnings Call | August 15, 2024
Slide 16: July 2024 Retail Sales and Dealer Inventories
July 2024 Retail Sales (Rolling 3 Months) and Dealer Inventories Retail Sales U.S. and Canada Ag Industry* Deere** 2WD Tractors (< 40 PTO hp) 16% More than the industry 2WD Tractors (40 < 100 PTO hp) 10% More than the industry 2WD Tractors (100+ PTO hp) 13% In line with the industry 4WD Tractors 13%
Slide 17: July 2024 Retail Sales (Rolling 3 Months)
July 2024 Retail Sales (Rolling 3 Months) Retail Sales Europe Ag Deere* Tractors Double digits Combines Double digits Retail Sales U.S. and Canada Deere* Selected Turf and Utility Equipment Flat Construction and Forestry First-in-the-Dirt Single digit Settlements Single digit * Based on internal sal
Slide 18: Deere Use-of-Cash Priorities
Deere Use-of-Cash Priorities CASH FROM OPERATIONS Manage the balance sheet, including liquidity, to support a rating that provides COMMITTED access to low-cost and readily available short- and long-term funding TO “A” RATING mechanisms (reflects the strategic nature of our financial services operati
Slide 19: 4Q 2024 earnings call scheduled for 21 November 2024
Deere & Company’s 4Q 2024 earnings call is scheduled for 9:00 a.m. Central Time on Thursday, 21 November 2024. 19 John Deere | 3Q 2024 Earnings Call | August 15, 2024
Slide 20: John Deere
@ JOHN DEERE